LONDON, UK: ECO Animal Health Group plc (AIM: EAH), known for its expansive portfolio of veterinary products and a burgeoning R&D pipeline, has announced the sale of its ECOmectin® Horsepaste to ACME Drugs S.r.l, a trusted manufacturing partner based in Italy.
The deal, valued at €1.3 million, marks a significant step in ECO’s ongoing efforts to streamline its operations.
With a primary focus on the treatment and prevention of diseases in pigs and poultry, ECO has identified ECOmectin® Horsepaste, a treatment for equine parasites, as non-essential to its main business strategy. This divestiture allows ECO to direct its resources and attention towards its key areas of expertise.
ACME Drugs S.r.l will take over all marketing authorizations for the horse paste, including the intellectual property rights, manufacturing, distribution networks, and existing inventory. The marketing authorizations are mainly held within the UK and EU territories. Additionally, ACME has secured a trademark license to continue marketing and selling the product under the ECOmectin® brand name.
The transaction involves an upfront payment of €500,000, with two subsequent payments of €400,000 each, scheduled at 18 and 36 months post-completion. These deferred payments are guaranteed by a bank and are not contingent on any conditions.
The sale reflects a decrease in revenue from the previous year, with the horse paste business generating £814,000 in the year ending 31 March 2024, down from £988,000 in 2023. The board of ECO is optimistic that the proceeds from this sale will bolster the company’s innovative pipeline, particularly in the development of new vaccines and preventive measures for its core livestock species.
This transaction is a testament to ECO’s commitment to reinvesting in research and development, ensuring the company remains at the forefront of animal health innovation.
David Hallas, Chief Executive Officer of ECO Animal Health Group plc, commented: “The disposal of ECOmectin® Horsepaste is in line with our stated intention of focusing on treatments and preventatives in pigs and poultry and this enables us to increase investment in our R&D pipeline. The brand and the broader business is a good fit for ACME Drugs S.r.l and we are pleased that the business will be taken forward by a committed owner.
“We continue to look for value accretive opportunities both within our portfolio and outside and for opportunities to reinvest in our R&D pipeline to support future growth.”